Land 400, Singapore Military Training Initiative

16 March 2018

ADAM STEPHEN:

The LNP, federal politicians and even a newspaper are claiming victory for securing a multi-billion-dollar contract to build tanks in Queensland. The lion's share of this work is actually going to be done in the south, but there may be some pretty decent-sized scraps coming this way, too. The whole contract is going to be worth $5.2 billion and employ 450 people, but just how much of that is going to come to North Queensland?

Well, Senator Marise Payne is the Australian Defence Minister and she is with us now on Northern Drive. Good afternoon, Senator Payne.

MINISTER PAYNE:

Good afternoon, Adam.

ADAM STEPHEN:

So, what is in this multi-billion-dollar contract for the north?

MINISTER PAYNE:

Well, Adam, I think for the Army in particular – and, you know, you have the odd garrisons city in northern Queensland – for the Army in particular, this is a very important day. We are going to deliver our Australian ADF members, the men and women who we ask to put their lives on the line, with some very important capabilities that will enable them to ensure they have increased safety, they have increased mobility, and they have greater lethality in the combat reconnaissance vehicles we're going to build. For North Queensland, that will include an engagement of part of the $1.8 billion, which is part of the acquisition amount. There are companies from a range of areas around the countryside, and that includes your part of the world as well, who will definitely be participating in that.

ADAM STEPHEN:

It's easier sometimes to wrap our heads around jobs. How many jobs might this mean for the north?

MINISTER PAYNE:

I think across Queensland the initial estimates are up to 330. I think it's difficult at this point to break it down business by business and so on, but what you can focus on and I think your listeners can focus on is the important message that this sends about what the Government is committed to in terms of capability for the Defence Force, but more importantly making sure that our defence acquisitions, our procurement, is done here in Australia with Australian steel, by Australian workers, and delivering Australian jobs.

ADAM STEPHEN:

Tell us a little bit more about these vehicles. Why were they needed?

MINISTER PAYNE:

Well, they are replacing the venerable ASLAV, which will be known to many of you from times past, which have been in service now for over 20 years. The ASLAV was produced at a time when the technology used by our opponents was not as lethal, I have to say, unfortunately, as it is these days. So we need a stronger and better vehicle to protect the members of the ADF who are using them, and we need to make sure that we're providing them with the best technology and best equipment. It's called a combat reconnaissance vehicle for a reason. One of those things is because it has some very complex systems which will enable it to give the intelligence that's necessary to inform our battle plans and make sure that when we strike, we strike decisively.

ADAM STEPHEN:

You're hearing from Senator Marise Payne across North Queensland this afternoon. We're discussing the fact that Queensland has won the bid to build some tanks, and it's a very lucrative bid – $5.2 billion, up to 450 jobs as part of this contract. Much of the work to be done in the south, but the north is set to benefit as well. In fact, Senator Payne, we're hearing that Cairns may also see some spinoffs from this. Do you know what they might be?

MINISTER PAYNE:

Well, certainly there's a number of skilled operations in Cairns which may have the opportunity to contribute to that. We will also be upgrading the simulation capacity at Lavarack Barracks as well, and that particular work will be underway in due course. So, when we talk about the breadth of the engagement, it is truly a national enterprise. There's not a state in Australia [indistinct]. As I said, Australian workers, with Australian steel, producing the best vehicles we can provide to our Army to do the jobs we ask them to do.

ADAM STEPHEN:

Senator Payne, when will we start to see jobs created in North Queensland, in Townsville?

MINISTER PAYNE:

Well, Adam, the work is underway, led by Rheinmetall, who is the tenderer who has won the process here today. The work is underway with Rheinmetall to engage with the companies across Queensland, a dozen of them in total, and that is in prospect now. They will work at their own pace, but we are certainly supporting them strongly from a Defence perspective through our Capability Acquisition and Sustainment Group, the team that have brought this outcome to government and enabled us to make this decision. They work very closely with businesses around Australia and that will be no different in this case, and I look forward to seeing that happen very soon.

ADAM STEPHEN:

On another note, Senator Payne, while we've got you, there will be no forced land acquisition for training Indonesian forces, but only voluntary sales. Do you know how many farmers have been willing to sell?

MINISTER PAYNE:

Well, Adam, it's actually Singaporean defence forces who are …

ADAM STEPHEN:

[Talks over] Singaporean, that's correct.

MINISTER PAYNE:

… long-term visitors to Australia for training activities. Those discussion are still underway. They are being held by Defence officials and local members of the community who [indistinct] be required to sell land. Only willing sellers will be engaged, and we look forward to being able to work closely with local industry to make sure, as we're delivering the upgrades to the training areas at Shoalwater Bay and for a new training area in the Townsville region, that we are very strongly engaged with local industry. One of the reasons we're able to do that is because of the initiative of the Local Industry Capability Plan, which I have visited Townsville and talked about relatively recently, ensuring that local trades are a key part of the tendering process, that a head contractor or a managing contractor must report on their engagement with local business and what local business will be delivering in the assessment of the tender process.

ADAM STEPHEN:

So, when do we expect to know just whether farmers have actually voluntarily sold their land?

MINISTER PAYNE:

Well, it is a sensitive and, as you can imagine, a considerable decision for any individual landholder to make. It will take as long as it takes for them to be prepared to make those decisions. I don't have a specific timeframe to put on that because I want to make sure, subsequent to the considerable discussions that I've had in North Queensland previously on this matter, that the individual landholders are comfortable with the decisions that they're making and we're able to work with them to achieve that outcome.

ADAM STEPHEN:

Senator Marise Payne, thank you very much for outlining just how North Queensland is going to see some of this flow-on effect from the contract being awarded here in Queensland, and also clarifying where we're at with the land acquisition. We do appreciate your time this afternoon.

MINISTER PAYNE:

Thank you, Adam. I look forward to visiting again soon.

ADAM STEPHEN:

Senator Marise Payne with us on Northern Drive; she is the Australian Defence Minister.